Market Overview

Airbnb, DoorDash Reportedly Up IPO Valuation Target By $3B Each

Airbnb, DoorDash Reportedly Up IPO Valuation Target By $3B Each

Airbnb Inc and DoorDash Inc are revising their enterprise valuation targets for their upcoming initial public offerings next month, according to the Wall Street Journal. Both the unicorn startups have reportedly upscaled the valuation range by $3 billion each.

What Happened: The hike in the companies' valuations was a result of Friday’s hawkish market sentiments, as per the Journal. On a fully diluted basis, Airbnb’s enterprise value is expected to be between $30 billion to $33 billion. Whereas, DoorDash’s revision puts the food delivery company’s expected valuation in the range of $25 billion and $28 billion.

Investor roadshows would begin early this week and the price per share details are expected to be released soon. According to WSJ, DoorDash is said to be using a system developed by Goldman Sachs Group Inc (NYSE: GS) for pricing its IPO.

Why Does It Matter: At the onset of the pandemic in early April, Reuters said that the home rental startup cut down its internal valuation to $26 billion. A couple of days later, CNBC reported an update about a $1 billion funding, partly in debt and balance by equity, from Silver Lake and Six Street Partners.

BlackRock Inc (NYSE: BLK), T.Rowe Price Inc (NASDAQ: TROW), and Fidelity along with other institutional investors contributed another $1billion by mid-April in a second financing round, CNBC reported.

On the other hand, DoorDash was valued at $16 billion, when it raised $400 million in June. DoorDash’s 18 million customers and 3,90,000 merger partnerships place the company as a market leader in the food delivery business.

See Also: Airbnb IPO Filing: 5 Key Takeaways Investors Need To Know


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